Pop Up Shops as Business Development Tools

Can retail entrepreneurs use the Lean Startup approach? Popularized by Eric Reis, many companies in the tech sector embrace this approach which uses customer feedback to guide product development. I think there is a way for retailers to have a lean startup : pop up shops.

Pop up shops are a recent phenomena, perhaps inspired by a desire for spontaneous action or the ‘just do it’ approach to entrepreneurship. “A pop-up is a shop, a restaurant, a collection of shops, or an event that opens quickly in a temporary location and is intended to operate for a short period of time” ¹ I’ve recently become aware of pop up shops because the Downtown Oshawa BIA (business improvement areas), of which I am a member and volunteer for, is considering an initiative to facilitate them.

Established brands may use the pop up concept to test new products, do a promotion or generate interest. E-retailers also may find it useful, for similar brand promotion reasons, to have a physical presence for a limited time. For examples, this article  mentions Target as a traditional retailer that tried a pop up to promote a new line of clothing, and e-retailers, Shop.ca and Frank & Oak, have used pop ups. Pop ups may also be useful for seasonal goods or time-limited markets.

For entrepreneurs looking to start a new venture, launching the business on a temporary basis through a pop up has many advantages, which include:

  • obtain valuable information about target market and direct feedback from customers
  • start earning money while in the planning phase
  • use current business techniques like lean startup
  • gather information to help you decide how to optimize your business model, test your assumptions.

Here’s why property owners might want to provide pop up space:

  • allowing vacant retail spaces to be used for pop up shops provides some income
  • having a temporary tenant gives potential permanent tenants a better feel for the space in a low pressure environment – it’s like a month-long open house for the premises
  • pop up tenants may become permanent tenants, paying full rent
  • the pop up initiative, as it builds vibrancy in the local business area, increases the value of all the properties in the area.

Pop up initiatives can be used for economic development, pairing vacant storefronts with entrepreneurs – to the benefit of all involved. Such programs can be a positive experience for property owners, entrepreneurs, existing retailers and supporters such as local governments. One great example of a local success for pop up shops in a retail area that was in need of revitalization is Danforth East in Toronto. Organizations such as Renew will assist towns or areas within cities to establish a pop up program and report successes. Local BIA’s and other economic development groups may support a pop up initiative because:

  • to support mandates to promote the area as a business and shopping district, for urban renewal, to refresh the image of an area
  • the infusion of new, temporary retailers should draw additional visitors to the business area, benefiting all resident businesses
  • providing a novel, fresh approach to retail in the area will generate additional interest in the area

For the entrepreneur, pop up shops provide opportunities for aligning products with customer needs and building brand awareness. A facilitated pop up initiative, lead by a group such as a BIA or town, can provide benefits to all business owners in the community, through increased awareness and the attraction of a more diverse audience to the area.

If you are an entrepreneur interested in a pop up shop in downtown Oshawa, the Downtown Oshawa BIA would love to hear from you. Let them know if you are interested, what kind of facilities you would need and any questions you have about a pop up initiative. Email here: info@downtownoshawa.ca .


¹From this Forbes article, quoting Pop Up Republic.

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